Lecture Managerial accounting for managers (4e) – Appendix 2A: Least-squares regression computations
The reason is that there are many types of costs, and these costs are classified differently according to the immediate needs of management. For example, managers may want cost data to prepare external financial reports, to prepare planning budgets, or to make decisions. Each different use of cost data demands a different classification and definition of costs. This chapter analyze a mixed cost using the least-squares regression method.
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